Gecina has declared that it aims to invest €4.6bn with a target yield of 6.6% and sell property worth €3.1bn, with a target yield of 4.1%, as part of its strategy for 2006 to 2010.
The company, which is a subsidiary of listed Spanish firm Metrovacesa, had been expected to announce an investment and disposals programme in the wake of the takeover by the Spanish company in 2005. The French-based SIIC said residential assets will account for 65% of the property sold, while the company aims to acquire large offices as well as hotels and possibly hospitals.
JP Morgan analyst Harm Meijer said: “Gecina’s strategy looks ambitious to us. We believe the company will realise significant value from residential sales and we like the active approach. However, we believe yield compression will continue and that the investment market remains strong, which will make the execution of the strategy a challenge.”
Metrovacesa indicated it expected to record €1.2bn of turnover for 2005, excluding Gecina. This figure was higher than expected, and was largely down to an increase in disposals to €450m.
